Spartannash Corporate Responsibility Progress Report
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Corporate Responsibility Social and Environmental Progress Report Corporate Responsibility Social and Environmental Progress Report 1 Table of Contents INTRODUCTION 3 WHO WE ARE 4 The data included in this report reflects SpartanNash’s footprint and CR DASHBOARD 5 initiatives from January 1 to December 31, 2018. LOCAL DEVELOPMENT 6 GROWERS AND PRODUCERS 7 COMMUNITIES 8 SPARTANNASH FOUNDATION 9 HEALTH AND SAFETY 10 INFORMATION SECURITY 17 ASSOCIATE DEVELOPMENT 18 ETHICS AND COMPLIANCE 20 PROJECT ONE TEAM 21 VOLUNTEERING 22 DIVERSITY & INCLUSION 25 WASTE REDUCTION 28 ENERGY REDUCTION 32 LOOK FORWARD 35 Corporate Responsibility Social and Environmental Progress Report 2 Introduction Year over year, associates throughout universal processes and productivity, as well as SpartanNash join forces to continue to drive provide management tools and success metrics to greater social and environmental impact exceed performance objectives. throughout the communities we serve. To ensure we are engaging our nearly 19,000 With a nine-state retail footprint, 50-state associates along this journey, SpartanNash wholesale distribution network and global military leadership has modeled our core values, working distribution channel, we recognize we have as ONE TEAM, TOTALLY ALIGNED to SPEAK UP, the ability to influence millions of store guests, EMBRACE CHANGE and DRIVE INNOVATION to independent retail customers, suppliers, vendors, OWN our corporate responsibility goals. shareholders and community partners. Our daily actions have consequences, and therefore we set We are excited for the positive changes—from clear, realistic priorities based on our corporate investing nearly $3 million and more than 56,000 responsibility dashboard and three-year strategic volunteer hours annually into the success of plan to hold ourselves accountable, striving to be our community partners; to building a diverse a best-in-class company that feels local, where and inclusive workforce with opportunities for relationships matter. It’s our vision, and our advancement; to reducing waste, energy and our marching orders. carbon footprint. This report outlines our progress along this Our work is far from done—in fact, there is no journey, as well as a look ahead. finish line. We will continue to hold ourselves accountable to drive social, environment and In full transparency, data collection from our 19 governance (ESG) sustainable practices that distribution centers, four service centers and best serve our communities, environment and more than 155 corporate-owned grocery stores company performance. takes time, resources and change management. Consequently, we invested in multiple We welcome your input and partnership along management systems and team leaders to drive this journey. — Our SpartanNash family Corporate Responsibility Social and Environmental Progress Report 3 Who We Are ND Fargo MN As of December 31, 2019 St. Cloud SD WI MI Sioux Falls Grand Rapids NE IA FORTUNE 400 Lima Omaha Bellefontaine MD IN OH Bloomington Landover VA Indianapolis Norfolk Bluefield NC Lumberton Oklahoma City MORE THAN $8 BILLION IN SALES GA Columbus TX Pensacola FL San Antonio Lakeland A LEADING DISTRIBUTOR OF Retail Grocery Stores Wholesale Food Distribution Centers GROCERY PRODUCTS TO MDV Distribution Centers Caito Foods Distribution Centers Food Distribution and MDV States U.S. MILITARY COMMISSARIES OUR FAMILY OF COMPANIES SIXTH LARGEST FOOD DISTRIBUTOR IN U.S. 19 DISTRIBUTION CENTERS NEARLY 19,000 ASSOCIATES OUR FAMILY OF RETAIL STORES 134 YEARS OF HISTORY Corporate Responsibility Social and Environmental Progress Report 4 CR Dashboard Notable Highlights Corporate responsibility is a journey—and our CR Local Development dashboard provides us with a roadmap of how we • Granted $1.4 million annually in corporate funds and $1.5 million through the SpartanNash as a company can sustain and scale our commitments; Foundation to build stronger communities. predict and respond to emerging needs; and engage • Distributed $1.7 million in tax savings to SpartanNash non-management associates through a our associates and communities in socially responsible, discretionary cash bonus in 2018. environmentally sustainable ways. • Raised minimum wage to at least $10 per hour at corporate retail stores, as part of our commitment to providing fair and equitable wages. Pay is adjusted annually to ensure competitive Our SpartanNash CR dashboard is made up of five wages for associates throughout the company. components—local development, volunteering, diversity • Introduced the Clean Ingredient Initiative for Our Family®, Open Acres® and Freedom’s Choice® and inclusion, waste reduction and energy reduction. products as a way to simplify our ingredient lists and make it easier for store guests and U.S. commissary patrons to make informed purchasing decisions. • More than 14,000 associates took part in mandatory dignity and respect training in 2018, with all new hires thereafter taking part in education and awareness as part of the onboarding process. Volunteering • In 2018 and 2019, associates volunteered more than 56,000 hours annually, making an economic impact of more than $1.3 million each year. • 176 associates joined the 100 Club by self-reporting more than 100 volunteer hours in 2019— an 11 percent increase from the year before. Diversity & Inclusion • Named a Military Friendly® Employer by VIQTORY and silver-level Veteran-Friendly Employer by the Michigan Veterans Affairs Agency. • In 2019, 439 leadership positions were filled by internal candidates, with 41 percent filled by female associates, 15 percent filled by people of color and 5 percent filled by veterans. SpartanNash has been honored as one of the Best and Brightest Companies to Work For® Top Waste Reduction 101 in the Nation, as well as one of America’s • Merged waste tracking into a single-source companywide dashboard to empower associates Best Employers by State. In 2019, Forbes ranked to drive waste reduction and efficiencies. SpartanNash #37 in Michigan. • Diverted more than 5 million pounds of food annually to food banks and pantries, animal feed Learn more. and composting. • In 2018 and 2019, Earth Week celebrations generated 235,000 hours of workforce development through donations to 19 Goodwill partners in 15 states. Energy Reduction • The SpartanNash fleet’s average miles per gallon improved 12 percent over our 2013 baseline— resulting in 107,938 fewer gallons of diesel consumed in 2018. • Since we began tracking our energy efficiency projects in 2007, SpartanNash has saved a total Corporate Responsibility of 52.2 million kilowatt hours as of year end 2018. Social and Environmental Progress Report 5 Local Development We are committed to expanding our diverse, local product offerings in our retail stores and to independent customers, which in turn fuels local economies while reducing food miles and meeting our customers’ growing appetite for close-to-home products. Our local efforts also align with one of our key strategic initiatives to improve associate engagement. Associate-driven initiatives have included career development; health, wellness and safety initiatives; and robust Total Rewards to advance physical, financial, emotional, community and career wellbeing. Local development also includes building stronger communities, working alongside our community partners through our corporate giving and SpartanNash Foundation grants. Corporate Responsibility Social and Environmental Progress Report 6 Partnering with Local Growers and Producers SpartanNash is committed to partnering with local farmers and entrepreneurs in the communities we serve. We understand when consumers see the label “local” on a product, they expect to use their purchasing power to support products and businesses right in their own backyards. For this reason, we define local as: Locally Grown Locally Made Any farm-grown or farm-raised product must come from Any food product only produced within the same state a farm located within the same state as the retail store, as the retail store, or within 100 miles of the store if it or within 100 miles of the store if it crosses over the crosses over the border into another state. border into another state. Local Items (Includes number of local products in Grocery, Frozen and Dairy only) 2,393 2,344 2,117 1,805 1,500 SpartanNash was the first food distributor and retailer in Michigan to sign Migrant Legal Aid’s Fair Food Pledge in 2016, affirming our commitment to fair labor practices for the state’s migrant and seasonal farmworkers and their In 2018, SpartanNash began partnering with families. More than 40 SpartanNash independent retailers Revolution Farms—an aquaponics farm located have joined us in signing the Fair Food Pledge. just a few miles up the road from SpartanNash’s headquarters in Grand Rapids, Mich.—to provide Learn more about our commitment to fair fresh, sustainable lettuce and greens for store guests treatment and safe working conditions. throughout Michigan. Sold exclusively in Family Fare, D&W Fresh Market, Forest Hills Foods and VG’s Grocery stores, Revolution Farms lettuce goes from farm to store in one or two days. 2015 2016 2017 2018 2019 Corporate Responsibility Social and Environmental Progress Report 7 Investing in Our Local Communities Corporate Giving In 2019, SpartanNash contributed $1.4 million in Through Direct Your Dollars, 501(c)(3) nonprofit financial support and in-kind donations, funding 2,704 organizations can earn $1,000 from SpartanNash local sponsorships,